JGBs flat in muted trading amid higher risk sentiments among investors

The Japanese government bonds traded flat in muted trading session as investors shifted towards riskier assets including equities and oil. Also, a rise in US Treasury yields post the tepid 10-year auction added to further sluggishness in Japanese bonds.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.02 percent, the yield on long-term 30-year rose 1/2 basis point to 0.83 percent and the yield on short-term 2-year traded flat at -0.14 percent by 04:55 GMT.

The United States held a 10-year auction overnight, where, After the auction, U.S. 10-year yields, which move inversely to prices, matched a high hit two weeks ago, while 30-year bonds touched three-week peaks.

The 10-year note auction’s lukewarm result was expected, analysts said, given how much rates have declined in the past week. Over the last two weeks, 10-year yields have fallen about 10 basis points.

Meanwhile, Japan’s Nikkei 225 rose 0.44 percent to 19,863.00 by 03:55GMT, while at 03:00GMT, the FxWirePro's Hourly Yen Strength Index remained slightly bearish at -89.49 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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